D’Arcangelo Blog

Thinking of Buying a Vacation Home?

Though winter managed to hit us with one last, dizzying storm Stella, many of us were inside earlier this month dreaming of summer. Many people are planning vacations now for later this year.  At this time, you might be weighing the purchase of a second home specifically for vacations. Here are some of the issuesContinue reading →

How Does An ESOP Work As A Retirement Plan?

ESOP – Employee Stock Ownership Plans.  As the title indicates, an ESOP is a process for transferring ownership of the company to employees. How does that work as a retirement plan? In some ways, an ESOP is similar to a profit-sharing plan (see the CPA Client Bulletin, January 2017), in which the company makes cashContinue reading →

After-Tax Dollars in Traditional IRAs

Workers under age 70½ can deduct contributions to a traditional IRA, as long as they are not covered by an employer’s retirement plan. The same is true for those workers’ spouses. If these taxpayers are covered by an employer plan, they may or may not be able to deduct IRA contributions, depending on the taxpayer’s income.Continue reading →

Expensive Custodial Care Alternatives

If you or a loved one ever need help with daily living activities, you will discover that custodial care can be expensive. That’s true whether the care is provided at home, in an assisted living facility, or in a nursing home, and it’s especially true if care is needed for many years. Long-term care (LTC) insuranceContinue reading →

Is a Pension Plan Right for Your Small Business?

Traditionally defined benefit plans, structured to provide a lifelong pension, have become rare in the private sector. They’re still the norm for public sector employers; some large companies continue to offer plans. Ironically, these plans might be a good fit for extremely small companies. A possible prospect could be a business or professional practice withContinue reading →

Be Cautious With Hard-To-Value IRAs

A new year begins with celebrations, resolutions, and dual IRA opportunities. Most workers and their spouses have until April 18, 2017 (April 19 in some states), to contribute to an IRA for 2016. At the same time, contributions to 2017 IRAs are now permitted; the earlier money goes into the account, the more time forContinue reading →

How Medical Expenses Before Year End May Pay Off

The PATH Act of 2015 is not the only recent tax law affecting year-end planning this year. One provision of the Affordable Care Act, passed back in 2010, comes into play now. For taxpayers age 65 or older, it may pay to incur optional medical expenses by December 31, 2016. Under the Affordable Care Act,Continue reading →

Savvy Planning Minimizes IRA Withdrawal Bite

Many people save money for retirement in a traditional IRA. The funds might have come from annual IRA contributions, or from rolling over an employer sponsored retirement account such as a 401(k). Either way, the dollars in your traditional IRA are probably pretax, so they’ll be taxed on withdrawal. You can leave the money inContinue reading →

How Medical Expenses Before Year End May Pay Off

The PATH Act of 2015 is not the only recent tax law affecting year-end planning this year. One provision of the Affordable Care Act, passed back in 2010, comes into play now. For taxpayers age 65 or older, it may pay to incur optional medical expenses by December 31, 2016. Under the Affordable Care Act,Continue reading →

Year End Business Tax Planning

The PATH Act’s many provisions also include a permanent increase in the amounts allowed under IRC Section 179, which permits rapid deduction (expensing) of funds spent for business equipment. For 2015, expensing up to $500,000 of equipment was allowed with no phaseout beginning at $2 million of purchases. For 2016, the inflation adjusted amount isContinue reading →